Rupee gains marginally at 60.14 on strong global cues

The rupee opened the day marginally strong at 60.14 against the dollar as against its previous close of 60.17.

The currency opened the day strong on the back of strong global cues, particularly Asian stock markets. The rupee is expected to trade in a range for most of the week and remain volatile as we head unto the Union Budget.

The rupee has gained substantially from the start of the year on the back of robust dollar inflows from foreign funds and a sharp fall in the current account deficit. In fact, several measures taken by the government and the RBI has helped bring down the current account deficit to under 1 per cent of GDP, thus helping the currency recover.

However, the Reserve Bank of India may not want the rupee to recover sharply to help exports remain competitive in the global markets. Check currency rates here